Interpretation of cryptocurrency market on Aug 27, 2022
Last night's market shakeout was intense. First, there was a rally along with continued positive economic data, followed by Powell's comments that the neutral range for interest rates is not the place to stop the Fed. Avoid hawkish comments that trigger a direct market dive in response.
The previous article reminded the current Fed has the basis to continue to raise rates sharply. The decline was also mentioned several times as a probable event. While it was inappropriate to place bets beforehand, hindsight also gives ample time for entry. With Powell setting the tone for the subsequent policy direction, the market has also begun to price in a significant rate hike. After that, it's time to enter the exit phase of the shortlist because the short has been priced in advance of all the data releases next month. As long as it's not sharply negative, the market's reaction will be unfavorable to the short position.
The previous article reminded the current Fed has the basis to continue to raise rates sharply. The decline was also mentioned several times as a probable event. While it was inappropriate to place bets beforehand, hindsight also gives ample time for entry. With Powell setting the tone for the subsequent policy direction, the market has also begun to price in a significant rate hike. After that, it's time to enter the exit phase of the shortlist because the short has been priced in advance of all the data releases next month. As long as it's not sharply negative, the market's reaction will be unfavorable to the short position.